Hanson was hailed as an example of how the effective use of management Essay - 1

Hanson was hailed as an example of how the effective use of management resources can lead to success. Explain the growth of Hanson highlighting both internal an - Essay Example and as a result gain above average earnings and returns, this strategy states that the firm has to first identify the potential resources that will lead to growth, the next step is to evaluate these resources on whether they are valuable, rare, the ability to control these resources and whether the resources can gain value in the future. According to this strategy the firm will select an attractive industry to invest where the firm will have the opportunity to fully exploit its resources. The firm will also have to be capable of integrating their resource to perform tasks which will help the firm gain competitive advantage over its rivals. Chandler (1960) introduced the strategy and structure theory which stated that organisations were the agents of the industry, for this reason therefore the organisations determined industrial transformation, according to this theory the market mechanism is replaced by the enterprises which allocate resources and coordinate activities, in his view the invisible hand in the market is replaced by the visible hand of management. This strategy also states that the organisation moves from an unmanaged form of organisation to a managed form of organisation and for this reason management becomes a source of power to the organisation because management ensures continuous growth. Hanson stated that his management skills could be applied to any industry in the economy, his growth strategy was based on a number of objectives and strategy which can be referred to as conglomerate strategy, he chose companies were located in the US or in the UK. After acquiring these companies Hanson would reorganise the company to achieve high levels of earnings and the company would gain value, after the organisation gained value he would sell the company at a higher price than he acquired it. When the company was acquired he would undertake strategies that would oversee the growth of the organisation, the growth of the organisation was made possible by